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  • 1. © Copyright 2013 by K&L Gates LLP. All rights reserved. Association Executives of North Carolina/NC FreeEnterprise Foundation NAVIGATING NORTH CAROLINA CAMPAIGN FINANCE Sponsored and Hosted by K&L Gates LLP
  • 2. K&L GATES POLITICAL ACTIVITY IN NC FOR ASSOCIATIONS AND CORPORATIONS • State Board of Elections • Ethics Commission • Secretary of State klgates.com 2
  • 3. K&L GATES NORTH CAROLINA CAMPAIGN FINANCE What is a Political Action Committee (“PAC”)? • What is an Independent Expenditure (“IE”)? • What is an Independent Expenditure Committee (“IE PAC” or “Super PAC”)? • What is Electioneering? • What’s New? klgates.com 3
  • 4. -j Cl) w w I— — 0 o Ci < I— C,” I. 0 0 U) U) - C/) C) o J o z o — I— 2- ) (_) ci) °— ‘I— C/) o cD_ 0.-C5x O2I—ZO•••• I I I
  • 5. UUUUiULJLJUL K&L GATES POLITICAL ACTION COMMITTEE (“PAC”) A PAC is a group or combination of two or more individuals whose major purpose is to support or oppose one or more clearly identified candidates or candidates of a clearly identified political party. • • -- . -- • Receives contributions from Individuals $5,000.00 limit per election • Contributes funds directly to candidates either in cash contributions or in kind $5,000.00 limit per election • Corporate contributions are not allowed • Can coordinate with other PACS and candidates • Administrative Support klgates.com 6
  • 6. L r r L- [1 F1 r — r, r’ r— ri U — — — — - K&L GATES — Reports to the North Carolina State Board of Elections (NCSBOE) Quarterly in Election Years and Semi-Annually in Non-Election Years All contributions and expenditures must be reported Contributions over $50 must have name, address and occupation of contributor 48-hour report Required when a contribution of $1000 is received during the last weeks before an election. Record keeping should be current within 7 days of receiving or making a contribution Date Issues Electronic Filing POLITICAL ACTION COMMITTEE REPORTING REQUIREMENTS • • • • • • a klgates.com • 7
  • 7. IZ r r r r r r E C r [Z C [Z C L C
  • 8. — I..— I L L _ I _ I I — INDEPENDENT EXPENDITURE f_i K&L GATES • Expenditure made to support or oppose one or more clearly identified candidates without consultation or coordination with a candidate or agent of a candidate that the expenditure supports, or whose opponent’s nomination or election the expenditure opposes. klgates.com 9
  • 9. 1 F r r - -J--- 1-’ INDEPENDENT EXPENDITURES r —- ‘- -, K&L GATES Does not require forming an IE committee or separate entity Traditionally, individuals, groups of individuals, PACs • Unlimited! Free Speech • Can be one time expenditure • Disclosures on ads klgates.com - 10
  • 10. LLUULL K&L GATES INDEPENDENT EXPENDITURE REPORTING • • • • Expenditures greater than $100 Must report any donations made for the purpose of the independent expenditure Reports due within 30 days after exceeding $100 or 10 days before an election Subsequent expenditures comply with reporting schedule of PACs klgates.com 11
  • 11. -. — L -- .- COORDINATION - I ri ii .J r’ U — K&L GATES Made in concert or cooperation with, or at the request or suggestion of, a candidate, a candidate campaign committee, the agent of the candidate or the agent of the candidate campaign committee • 3-prong federal test • Payment • Content • Conduct kgates.com — 12
  • 12. L Ti L F r r ç ‘ r’ r L rI •_ L- r’ L r LJ 1 r] K&L GATES INDEPENDENT EXPENDITURE COMMITTEE “IE COMMITTEE,” “SUPER PAC” OR “IE PAC” An IE Committee is a political committee registered with the NCSBOE that certifies that it will not directly or indirectly coordinate with, or make contributions to candidate committees or other committees that coordinate or make contributions to candidates. • After Citizens United, corporate contributions now clearly allowed • Unlimited • Cannot contribute directly to candidates • Cannot coordinate with other PACS or candidates klgates.com 13 -
  • 13. r- r — r ri — 1 ri 1 -- flI ‘ .‘.-1 7 ‘ ,1 K&L GATES Reports to the NCSBOE Quarterly in Election Years and Semi Annually in Non-Election Years (currently on the same schedule as PACs) All contributions and expenditures must be reported Contributors of more than $100 must file reports with NCSBOE within 30 days of contribution 48-hour report Required when an expenditure of $5000 or more is made, or a contribution of $1000 or more is received during the last weeks before an election. Record keeping should be current within 7 days of receiving or making a contribution Software INDEPENDENT EXPENDITURE COMMITTEE REPORTING REQUIREMENTS • • • • • • klgates.com , 14 — -J
  • 14. L r-’ r- L fl I, fli F !fl [ I: E1 I Fl i .1 WHY FORM AN INDEPENDENT EXPENDITURE COMMITTEE? • • -- K&L GATES - Donors to IE committee can see who has contributed and how money is spent Compliance with applicable laws Maintain tax exempt status Avoids complaints that general funds, operating funds, dues, etc. are being used for political purposes Ongoing visibility and fund raising Segregation of Funds Focuses attention on key political issues, bringing in donors who might not otherwise contribute Allows organizers and donors to shape and deliver their message, regardless of official campaign’s approach Buy-In • Tax Issues • • • Transparency • • • • • klgates.com 15
  • 15. — - — — — — — — Corporate formation Bylaws Confidentiality Policy Statements Firewalls — — — — — I — -- I fi K&L GATES HOW TO MANAGE BOTH PAC AND IE • • • • • klgates.com 16
  • 16. El F F r r F F F [ F F C L C C C C C C [Z C C C C L —4 C L L
  • 17. — .- r r r r r’ ‘ I — — K&L GATES ELECTIONEERING COMMUNICATIONS • Disclosure requirements— for 501(c)(4) entities, print media • 50,000 or more individuals in a statewide election or 7,500 in any other election if in the form of broadcast, cable, or satellite; or • 20,000 or more households, cumulative per election, in a statewide election or 2,500 households, cumulative per election, in any other election in the form of mass mailing or telephone bank Any broadcast, cable, satellite, mass mailing or phone bank communication that • Refers to a clearly identified candidate Does not expressly advocate for the election or defeat of the candidate • Is aired or transmitted within 60 days of the time set for absentee voting to begin • May be received by either • klgates.com 18
  • 18. [__ L... r ‘ r r r ELECTIONEERING REPORTING K&L GATES Not express advocacy • Not an independent expenditure • Must report over $5000 within 10 days of making the expenditure • Incurs the direct cost of producing and airing the communication • Names of donors providing over $1000 • Unlimited klgates.com r 19
  • 19. ‘1
  • 20. L [_ L.._._. • • • — I ¶ Ui U I I I ELECTION LAW CHANGES 1 K&L GATES Maximum Contribution Increase • The new 2013 tax reform bill changed the PAC contribution maximum from $4,000 to $5,000 per election. It also changed the time period for an “election cycle,” extending it through the end of the calendar year. Deleted Candidate Specific Communications Bundling restrictions for lobbyists Raffles Ad Disclosure Changes • Deletes disclosure requirements for independent expenditures and electioneering communications • Defines Electioneering Communications as those aired or transmitted after September 7 for November General Elections • Strikes the requirement for sponsor disclosure for independent expenditures and electioneering communications klgates.com 21
  • 21. K&L GATES www.klgates.com August 1, 2013 PracticeGroup(s): PubllcPolicyand What Do Corporations and PACs Need to Know About North Carolina’s Recent Election Law Reform? By Amy H. Fulibright and Margaret R. Westbrook North Carolina’s General Assembly has approved sweeping elections law changes. Making good on promises when Republicans assumed control of both the State House and Senate for the first time since Reconstruction, legislative leaders have adopted a multitude of revisions to existing state election laws. These changes are found in House Bill 589, which passed the House and the Senate late last week and currently awaits Governor McCrory’s signature or veto. Although the bill includes other, more headline-grabbing components, including a requirement for voters to provide government issued photo identification at polls, a shortened early voting period, the end of straight party ticket voting and same-day registration, and a requirement that voters register or make changes to their registration information at least 25 days in advance of an election, the bill also includes several provisions that could have significant effects on corporations and political action committees (“PACs”). First, the bill raises the amounts that individuals can contribute to candidates and PACs and the amounts that PACs can contribute to candidates from $4,000 to $5,000 per election. Importantly, this dollar amount will be indexed to increase in odd numbered years beginning in 2015 based on the consumer price index. The bill also changes the time periods for an “election cycle,” extending it through the end of the calendar year after an election. Therefore, contributors who have reached their maximum contribution limits cannot provide additional support for debt reduction immediately following the election. Additionally, the bill repeals the $1,000 limit for contributions to candidates for superior or district court judge positions and eliminates the public funding program for appellate court elections. However, the General Assembly narrowed a few traditional loopholes. The bill limits family members who may give unlimited amounts to candidates. Previously, a candidate’s spouse, parents, brothers and sisters were exempt from the contribution limits. Now, only a candidate’s spouse may donate unlimited amounts to the candidate. HB 589 also attempts to prescribe the use of money given for a political party “building fund.” Donations to these funds were previously unlimited, which made them a long-standing avenue for soft money. HB 589 seeks to limit use of these funds for a principal headquarters building and prohibits the use of those funds for headquarters equipment, other than fixtures, personnel compensation, or travellfundraising expense. It does allow funds to be used for up to three administrative personnel who meet certain requirements. Several key changes to the rules governing mass communications were included. The bill repeals Articles 22G and 22H defming candidate-specific communications and requiring disclosure statements to be filed with the State Board of Elections for candidate-specific communications in broadcast, cable, satellite, mass mailings or telephone banks. The bill clarifies that electioneering communications will be defined as those communications aired or transmitted after September 7 for November general elections. Most importantly, the bill strikes the previous requirement for sponsors of printed independent expenditure communications and electioneering communications to disclose
  • 22. K&L GATES Amy H. Fulibright Government Affairs Counselor Raleigh T 919.743.7352 F 919.516.2022 amy.futbright@klgates.com AREAS OF PRACTICE Amy Fulibright is a Government Affairs Counselor in the Public Policy and Law group whose practice focuses on legislative and regulatory affairs in North Carolina. Ms. Fullbright represents businesses, industry and associations before the North Carolina General Assembly on a variety of legislative matters, including taxation, financial services, privacy, appropriations, health care, and environmental issues. This includes drafting legislation, testifying before legislative committees and subcommittees, lobbying state representatives, monitoring legislation, and implementation of legislative strategies. PROFESSIONAL BACKGROUND Ms. Fullbright has more than sixteen years of experience in government and government relations, representing corporations, financial institutions, trade associations, and non profit entities. A member of the environmental team at her prior firm, Ms. Fullbright has experience working with legislation involving air and water pollution, water allocation, energy and power generation including coal, natural gas, petroleum and biomass, waste handling and disposal, electronics recycling, property remediation, chemicals and manufacturing, pharmaceuticals and biotechnology, agribusiness including food processing and transportation, timber and forest products and other environmental compliance and regulatory review issues. She works to successfully navigate legislative and regulatory requirements and maintain good relations with regulatory agencies and elected officials. EDUCATI ON BA., North Carolina State University, 1994 (Political Science) ACHIEVEMENTS . President, North Carolina Professional Lobbyists Association, 2011-2012 Named in 40 Under 40 Leadership Awards by the Triangle Business Journal in 2008
  • 23. K&L GATES Margaret R. Westbrook Partner Raleigh T 919.743.7311 F 919.516.2011 Charlotte T704.331.7400 F 704.331.7598 margaret.westbrook@klgates.com OVERVIEW Ms. Westbrook is a partner in the Raleigh office and has two distinct areas of practice: creditors rights and campaign finance. She has extensive experience in representing both secured and unsecured creditors in restructurings in and out of the court system and in foreclosures. She is a frequent speaker on bankruptcy and foreclosure issues at state and regional seminars. Ms. Westbrook also advises clients on matters relating to the regulation of corporate political activity, including the formation and administration of state and federal political action committees. She has represented clients in the North Carolina General Assembly and advised clients regarding the development of political corn pliance programs. PROFESSIONAL BACKGROUND Prior to joining the firm, Ms. Westbrook served as law clerk to the Honorable J. Rich Leonard, Judge of the United States Bankruptcy Court, Eastern District of North Carolina, 1996-1998. She now resides in the Raleigh Office (which, along with Durham and Chapel Hill, forms North Carolina’s Research Triangle). EDUCATION J.D., University of North Carolina, 1996 (with honors; Member, North Carolina Law Review; Order of the Coif) B.A., University of North Carolina, 1993 ACHIEVEMENTS Legal Elite, Business North Carolina Magazine, Bankruptcy Law, 2012, 2013 Triangle Business Journal, Women in Business Award, 2007
  • 24. K&L GATES James L. Joyce Associate Ra’eigh T 919.743.7336 F 919.743.7358 jim.joyce@klgates.com OVERVIEW Jim Joyce focuses his practice on environmental, energy, and land use matters. His clients include companies in the food manufacturing, enzymes, cement, real estate development, and oil and gas industries. Mr. Joyce’s experience includes advising clients on the environmental aspects of real estate and corporate transactions; land use and environmental permitting litigation; cleanup and redevelopment of contaminated properties; and compliance with federal, state, and local regulatory programs. Mr. Joyce also counsels clients in the development of shale gas resources, and is intimately familiar with North Carolina’s emerging regime for regulation of oil and gas production. He has followed closely and reviewed the regulations in production, starting with the beginning of the legislative process that continues to create North Carolina’s new oil and gas statutes and continuing through the work of the North Carolina Mining and Energy Commission and its subgroups in researching and drafting regulations. PROFESSIONAL BACKGROUND Prior to joining the firm, Mr. Joyce was a fellow at the University of North Carolina School of Government, where he co-authored a book on inclusionary zoning. His education in law and land use planning makes him well versed in zoning and land use related law. EDUCATION J.D., University of Virginia School of Law, 2009 (Dean’s Scholarship; Virginia Environmental Law Journal articles review board, articles editor; Merhige National Environmental Negotiation Competition) M.C.P., University of Maryland, 2006 (University Fellowship, LeFrak Award for Service to the Community) B.A., University of North Carolina, 2001 (with highest distinction; highest honors in political science, Phi Beta Kappa, Dean’s List)
  • 25. K&L GATES Marissa C. Farrell Policy Assistant Raleigh T 919.831.7003 F 919.516.2103 marissa.farrellklgates.com AREAS OF PRACTICE Marissa Farrell is a Policy Assistant in the Public Policy and Law group whose practice focuses on legislative and regulatory affairs in North Carolina. As a Policy Assistant, Ms. Farrell attends various legislative and agency meetings covering many different areas of interest in order to thoroughly track any changes or movements of given legislation. These areas consist of environmental, energy, finance, taxation, healthcare, and regulatory. Ms. Farrell focuses on providing detailed research, history, and reports on legislation in the General Assembly or efforts moving through particular Government Agencies. PROFESSIONAL BACKGROUND Ms. Farrell has spent the vast majority of her professional career in state level government and politics. This involvement includes working as the Legislative Director for a Representative of the State House, a Research Analyst and Committee Clerk for three State Senators and a Coalition Director for a national presidential campaign. While working at the General Assembly, Ms. Farrell gained invaluable experience and understanding of the process and nuances of drafting, introducing, moving, and passing legislation. As a research analyst, Ms. Farrell focused on environment and energy concerns and worked closely with the members and staff in order to draft successful legislation. Now as a Policy Assistant, she works to build and maintain good relationships with various elected officials, staff and agencies in order to better serve and contribute to the efforts of the policy team. EDUCATION B.A., Hillsdale College, 2010 (History)

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